REPRO Ltd is a little known company in Rwanda. It was founded in 2007 with a mission of bringing energy to the rural population.
In 2008, it started a project on river Rwishwa, in Western Province, called Murunda Micro Hydro Power Plant aimed at producing electricity and availing it to the local population. But, this being done within the private approach.
We are used to big parastatal companies exercising this activity of producing and distribution of energy.
But our government always in promoting the private sector scrapped off the law that gave RECO then, the monopoly of this activity thus allowing the private business to invest in this high tech activity.
The Managing Director Gregory Tayi of this company was approached to give a brief view of the project:
Your Company was recently invited in the international conference namely “the First High Level meeting of the Africa-EU Energy Partnership in Vienna”. Would you please tell us why you were invited?
Gregory Tayi : Our Company was invited as the first ever privately initiated, owned and operated micro hydro plant in the region to discuss the private sector approach in renewable Energy and share its success story as a role model private initiative.
Would you tell us briefly about this company?
GT: REPRO is a private company with mission of producing, distribution and selling of energy. It is a young company and so far has realised only one project: the Murunda Micro Hydro Power Plant. The success of this project was the reason behind our invitation in Vienna.
For your information the Minister of State in Charge of Energy officially inaugurated this plant on May 25, in presence of Netherland’s Ambassador who financially supported us through PSP Hydro GTZ project, international community such as GTZ, DFID, World Bank, and the Belgian Cooperation also was present, delegation from the Ministry of infrastructure just to name a few.
Your success seems to have echoes outside but little known in Rwanda, why is it?
GT: I would ask you the same question! But I think that people here do not realise what energy and renewable energy in particular is in our modern time. The world needs energy, and this need is exponentially increasing.
If we do not look around how we can satisfy this need, we are running into trouble of perpetual poverty, as energy is the engine of development.
But the outside world is aware of it. The government of Rwanda knows it too. But the government cannot do all, it can change laws but it is up to everybody to be sensitized and do what he can in this area.
That is why the law that gave RECO the monopoly of this business changed and was opened to private entrepreneurs too.
Let us talk about this project. We assume it is not an easy task to enter into this business. What were the challenges that you met?
GT: Challenges were of 2 kinds. Technical and Financial.
Would you explain briefly these problems?
GT: On one side as you may know, a hydropower plant whatever the size, requires mechanical, electrical and Civil engineering. The design and the execution needs expertise which is costing too much and not easy to find.
On the other side this project needs big financial capability.
Though PSP Hydro granted us with a subsidy of 50%, the additional part was not easy to put in place.
Our banks are not used to finance such project and it was not easy to convince them. And when they agreed, the interests are based on the usual commercial ones and not perceived on the basis of a long term project.
Therefore we obtained a bank loan in same conditions as short run business.
Leave a Reply